This Carl Icahn Pick is Plummeting
Shares of Forest Labs (NYSE: FRX) dropped in the pre-market on Tuesday, tumbling as much as 6 percent after the company reported earnings for the third quarter.
Forest Labs lost $0.21 per share; analysts had been expecting a loss of $0.08. Revenue also disappointed, coming in at $722.7 million, while the Street was expecting $774.4 million.
More disappointing, however, was the company's guidance. Now, Forest Labs expects to report a full fiscal year EPS around $0.45; analysts were expecting $0.54.
On its individual drugs, Forest Labs reported universally disappointing numbers. Sales of the company's Namenda came in at $345.8 million, less than the $378.6 million analysts had been anticipating. Sales of Lexapro came in at $20.3 million, worse than the $29.3 million that was expected. Sales of Bystolic were reported at $108.8 million, less than $113.7 million estimate.
The company blamed its disappointing results on the expiration of its Lexapro patent.
Forest Labs was one of Carl Icahn's biggest targets in 2012. The activist fund manager steadily increased his stake in the pharma company for most of the year in a bid to oust the company's management.
Unfortunately, Icahn failed to win as much control as he wanted; still, Icahn was given one seat on the company's board last fall.
Shares of Forest Labs closed at $37.59 on Monday. Shares look like they will open around $35.70 on Tuesday.
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